How should I fill out the dual agency section in the new Exclusive Buyer Agency Agreement (Form 201)?

QUESTION: In the previous version of Form 201, I used to initial all the lines in the dual agency section. However, my BIC told me today that I cannot do that in the new version of Form 201 that was released last month. Did something change? Can you tell me how to fill this section out?

ANSWER: The dual agency section in Form 201 is not a menu of choices like the Working with Real Estate Agents disclosure. This was true in the old Form 201, and it is still true in the newly revised Form 201. In the WWREA, you should initial all the different types of agency that you are willing to offer a particular consumer. That means sometimes you might initial all the lines, and other times that means you will initial only one or two lines.

Form 201 does not operate the same way, and agents have often filled out the form incorrectly as a result. As with the old Form 201, the dual agency section in revised Form 201 is meant to give you clear direction on what your agency can and cannot be with your client. The agency agreed to can change by amending Form 201, but as for how the dual agency section is to be completed, it is meant be specific and not leave any gray area as to how dual agency is practiced by the firm.

The dual agency section in new Form 201 looks like this:

Authorizations: Initial only as applicable below.

_______  _______ Firm may NOT act as a dual agent in a transaction involving Buyer.
_______  _______ Firm may act as a dual agent in a transaction involving Buyer.

If Firm may act as a dual agent, then initial only one line below:

_______  _______ Buyer does authorize the same agent to represent both Buyer and a seller in dual agency.
_______  _______ Buyer does NOT authorize the same agent to represent both Buyer and a seller in dual agency.
_______  _______ Buyer does NOT authorize the same agent to represent both Buyer and a seller in dual agency and directs Firm to practice designated dual agency. If Buyer directs Firm to practice designated dual agency, then Firm will practice designated dual agency unless: (i) it is not allowed under North Carolina law; or (ii) Buyer authorizes Firm in writing to practice dual agency only.

The first two initial lines address basic dual agency. If it is not permitted, then only exclusive agency should be practiced. Dual agency may be authorized later by amending Form 201, but unless or until that happens, exclusive agency is required if dual agency is not authorized.

If dual agency is permitted in the first section, then the next issue is what kind of dual agency can the firm practice? Can the same agent can represent both the buyer and the seller? Does the client direct the firm to practice designated dual agency?

Choose one of the three dual agency options after having a discussion with your client. Regulatory Affairs at the Real Estate Commission expects agents to choose one of these three options, and if dual agency later changes, then make sure the change is documented in writing.

Release Date: 11/27/2024; Updated 3/7/2025

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